{"id":50551,"date":"2025-11-04T20:23:15","date_gmt":"2025-11-05T01:23:15","guid":{"rendered":"https:\/\/prefblog.com\/?p=50551"},"modified":"2025-11-04T20:23:15","modified_gmt":"2025-11-05T01:23:15","slug":"november-4-2025","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=50551","title":{"rendered":"November 4, 2025"},"content":{"rendered":"

Interesting piece on a policy response to low CPP deferral rates<\/a>:<\/p>\n

Few realize that by waiting until age 70, retirees can more than double their monthly pension compared with taking it at 60. Delaying CPP or QPP is like buying a secure, inflation-protected, government-backed pension at half price \u2013 a deal unmatched in the private market. It protects against the two greatest financial fears in retirement: inflation and running out of money.<\/p>\n

Yet nine out of ten Canadians still claim by 65, even when they don\u2019t need the money. The result: The average person gives up roughly $100,000 in lifetime income by claiming at 60 instead of 70 \u2013 about the same as the median RRSP savings at retirement.
…<\/B>
In a research paper series on how to improve CPP\/QPP decisions<\/a> that I co-authored with Doug Chandler, Barbara Sanders and Alyssa Hodder at the National Institute on Ageing<\/a>, we found that for those who can afford to wait, the main reason for claiming early isn\u2019t financial \u2013 it\u2019s fear.<\/p>\n

To most people, delaying CPP or QPP feels like a gamble with death: \u201cIf I die soon, I\u2019ll get nothing.\u201d That short-term fear overwhelms the far greater long-term risk of outliving one\u2019s savings.
…<\/b>
That\u2019s why I developed the Pension Delay Guarantee, a simple, low-cost reform that flips the psychology of fear on its head.<\/p>\n

Here\u2019s how it works: If someone delays CPP\/QPP past 60 but dies before the higher benefits \u201ccatch up,\u201d their estate receives a one-time payment for the missed amount.<\/p>\n

In plain language: If you delay and die early, the guarantee ensures you don\u2019t lose out.
…<\/b>
Similar pension programs show that introducing a modest death benefit is the turning point in encouraging people to choose higher, lifelong income streams. The cost is minimal \u2013 just pennies on the dollar, because few people die before the breakeven age.<\/p><\/blockquote>\n

It’s an interesting idea. I’ve been tossing around the idea about writing a piece for PrefLetter next spring on CPP deferral and if I do I’ll see if I can fit in a section on this idea. Clearly, the most idiotic investment metric ever invented is the “break-even date” for CPP deferral and only shows just how innumerate the average Canadian is. I mean, why not just stick your CPP monthly payment (that you wouldn’t have received if you had used it to increase your subsequent payments) under a mattress? Then your break-even date is today, so it must be a fantastic investment, right? But I have been sharply criticized in the Globe comments section for describing the metric as garbage.<\/p>\n

I don’t really like the idea of a ‘breakeven death benefit’ in principal. It detracts from the purpose of the pension: to provide money for the rest of your life, no ifs, ands, or buts; providing a breakeven guarantee will mean less money for the rest of your life. But in matters of public policy, principle must defer to pragmatism. Earnestly educating people about how numbers work won’t do anything. Helping Little Johnny check under the bed for monsters and guaranteeing that there aren’t any just might.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2039 %<\/td>\n2,414.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2039 %<\/td>\n4,577.5<\/td>\n<\/tr>\n
Floater<\/td>\n5.97 %<\/td>\n6.24 %<\/td>\n59,958<\/td>\n13.53<\/td>\n3<\/td>\n-0.2039 %<\/td>\n2,638.0<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0937 %<\/td>\n3,697.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.72 %<\/td>\n4.49 %<\/td>\n68,934<\/td>\n3.27<\/td>\n5<\/td>\n0.0937 %<\/td>\n4,416.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0937 %<\/td>\n3,445.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.64 %<\/td>\n-18.44 %<\/td>\n80,238<\/td>\n0.09<\/td>\n6<\/td>\n0.2875 %<\/td>\n3,124.0<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.42 %<\/td>\n5.52 %<\/td>\n48,062<\/td>\n14.60<\/td>\n25<\/td>\n-0.1648 %<\/td>\n3,452.0<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.76 %<\/td>\n5.89 %<\/td>\n112,978<\/td>\n13.82<\/td>\n30<\/td>\n-0.3170 %<\/td>\n3,108.3<\/td>\n<\/tr>\n
Insurance Straight<\/td>\n5.36 %<\/td>\n5.39 %<\/td>\n55,749<\/td>\n14.72<\/td>\n21<\/td>\n-0.0997 %<\/td>\n3,386.6<\/td>\n<\/tr>\n
FloatingReset<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.3170 %<\/td>\n3,697.6<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n5.86 %<\/td>\n4.43 %<\/td>\n109,835<\/td>\n2.35<\/td>\n21<\/td>\n0.0884 %<\/td>\n2,647.2<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.3170 %<\/td>\n3,177.3<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.17 %<\/td>\n5.28 %<\/td>\n58,323<\/td>\n14.56<\/td>\n15<\/td>\n0.1754 %<\/td>\n3,101.3<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
ENB.PR.F<\/td>\nFixedReset Disc<\/td>\n-4.54 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 21.05
\nEvaluated at bid price : 21.05
\nBid-YTW : 6.41 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nInsurance Straight<\/td>\n-4.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 21.05
\nEvaluated at bid price : 21.05
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n
GWO.PR.Q<\/td>\nInsurance Straight<\/td>\n-2.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 23.06
\nEvaluated at bid price : 23.32
\nBid-YTW : 5.58 %<\/td>\n<\/tr>\n
ELF.PR.H<\/td>\nPerpetual-Discount<\/td>\n-2.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 24.00
\nEvaluated at bid price : 24.25
\nBid-YTW : 5.72 %<\/td>\n<\/tr>\n
PWF.PR.R<\/td>\nPerpetual-Discount<\/td>\n-1.77 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 24.10
\nEvaluated at bid price : 24.36
\nBid-YTW : 5.67 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nInsurance Straight<\/td>\n-1.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 21.88
\nEvaluated at bid price : 22.12
\nBid-YTW : 5.15 %<\/td>\n<\/tr>\n
CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 21.38
\nEvaluated at bid price : 21.38
\nBid-YTW : 5.48 %<\/td>\n<\/tr>\n
BN.PR.Z<\/td>\nFixedReset Disc<\/td>\n-1.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 23.37
\nEvaluated at bid price : 24.55
\nBid-YTW : 5.87 %<\/td>\n<\/tr>\n
BN.PR.M<\/td>\nPerpetual-Discount<\/td>\n-1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 20.96
\nEvaluated at bid price : 20.96
\nBid-YTW : 5.74 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset Ins Non<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 17.75
\nEvaluated at bid price : 17.75
\nBid-YTW : 5.78 %<\/td>\n<\/tr>\n
NA.PR.G<\/td>\nFixedReset Prem<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2028-11-16
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.41
\nBid-YTW : 4.99 %<\/td>\n<\/tr>\n
MFC.PR.N<\/td>\nFixedReset Ins Non<\/td>\n1.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 22.91
\nEvaluated at bid price : 24.20
\nBid-YTW : 5.23 %<\/td>\n<\/tr>\n
PWF.PR.O<\/td>\nPerpetual-Premium<\/td>\n1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2025-12-04
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.57
\nBid-YTW : -19.84 %<\/td>\n<\/tr>\n
CU.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 21.43
\nEvaluated at bid price : 21.43
\nBid-YTW : 5.35 %<\/td>\n<\/tr>\n
POW.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.80 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2025-12-04
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : -12.04 %<\/td>\n<\/tr>\n
GWO.PR.L<\/td>\nInsurance Straight<\/td>\n2.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2025-12-04
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : -11.58 %<\/td>\n<\/tr>\n
GWO.PR.P<\/td>\nInsurance Straight<\/td>\n3.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 24.64
\nEvaluated at bid price : 24.90
\nBid-YTW : 5.48 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nInsurance Straight<\/td>\n83,600<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 21.05
\nEvaluated at bid price : 21.05
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nInsurance Straight<\/td>\n33,100<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 21.83
\nEvaluated at bid price : 22.07
\nBid-YTW : 5.09 %<\/td>\n<\/tr>\n
IFC.PR.G<\/td>\nFixedReset Ins Non<\/td>\n28,700<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 23.61
\nEvaluated at bid price : 25.50
\nBid-YTW : 5.25 %<\/td>\n<\/tr>\n
BN.PF.F<\/td>\nFixedReset Disc<\/td>\n28,100<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 22.95
\nEvaluated at bid price : 24.20
\nBid-YTW : 5.85 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset Disc<\/td>\n27,000<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 23.88
\nEvaluated at bid price : 24.25
\nBid-YTW : 5.36 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset Ins Non<\/td>\n20,000<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 17.68
\nEvaluated at bid price : 17.68
\nBid-YTW : 5.71 %<\/td>\n<\/tr>\n
There were 15 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
See TMX DataLinx: ‘Last’ != ‘Close’<\/a> and the posts linked therein for an idea of why these quotes are so horrible.<\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
BN.PF.E<\/td>\nFixedReset Disc<\/td>\nQuote: 22.17 – 23.53
\nSpot Rate : 1.3600
\nAverage : 0.8458<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 21.78
\nEvaluated at bid price : 22.17
\nBid-YTW : 5.98 %<\/td>\n<\/tr>\n

SLF.PR.E<\/td>\nInsurance Straight<\/td>\nQuote: 21.05 – 22.44
\nSpot Rate : 1.3900
\nAverage : 0.9342<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 21.05
\nEvaluated at bid price : 21.05
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n

ENB.PR.F<\/td>\nFixedReset Disc<\/td>\nQuote: 21.05 – 22.08
\nSpot Rate : 1.0300
\nAverage : 0.6432<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 21.05
\nEvaluated at bid price : 21.05
\nBid-YTW : 6.41 %<\/td>\n<\/tr>\n

ELF.PR.H<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.25 – 24.95
\nSpot Rate : 0.7000
\nAverage : 0.4268<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-11-04
\nMaturity Price : 24.00
\nEvaluated at bid price : 24.25
\nBid-YTW : 5.72 %<\/td>\n<\/tr>\n

GWO.PR.Z<\/td>\nInsurance Straight<\/td>\nQuote: 25.77 – 26.77
\nSpot Rate : 1.0000
\nAverage : 0.7413<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2034-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.77
\nBid-YTW : 5.39 %<\/td>\n<\/tr>\n

POW.PR.C<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.90 – 26.50
\nSpot Rate : 0.6000
\nAverage : 0.3783<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2025-12-04
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.90
\nBid-YTW : -30.79 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Interesting piece on a policy response to low CPP deferral rates: Few realize that by waiting until age 70, retirees can more than double their monthly pension compared with taking it at 60. Delaying CPP …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-50551","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50551"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50551\/revisions"}],"predecessor-version":[{"id":50552,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50551\/revisions\/50552"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}